Nasdaq 100 Higher on Coronavirus Vaccine Hopes, But Hits a Roadblock

The Nasdaq 100 is pushing higher on the day, as are other US markets as hopes for a coronavirus vaccine were rekindled on Tuesday. Pharmaceutical company Novavax, which is listed on the Nasdaq 100, says it has commenced the enrolment of participants into the Phase 1 and 2 clinical trials of NVX-CoV2373, its coronavirus vaccine candidate. This news sparked a 20% premarket surge in its share price.
Investors are also putting money into cheaper airline stocks, as Saudi Wealth Fund’s investment into Boeing and the German government’s Lufthansa bailout seem to have energized the aviation sector. Today, Saudi Arabia lifted the ban on domestic flights, following the examples of a few governments that have either started easing travel restrictions or are making plans to do so.
Shares of Novavax, American Airlines and United Airlines are all up today, helping to prop up the Nasdaq 100.

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Technical Outlook for Nasdaq 100

The Nasdaq 100 surged past the 9452.0 resistance for the 3rd time in 5 days but quickly hit a roadblock as it approached the upper channel border’s intersection with the 9626.4 resistance line. It has pulled back 101 points since then but is still 0.54% up on the day as at the time of writing. This price move accordingly invalidates the harmonic crab pattern and puts the Nasdaq 100 firmly on the pathway to reclaiming its 2020 highs.

The pullback candle will need to close above 9452.0 on the day to fulfil the conditions for a time-filter breakout since yesterday’s candle closed above that price level as well. If this is confirmed, then the Nasdaq 100 could have another opportunity to target the 9626.4 resistance once more. If it can break above it, this could help the index on its way towards the all-time highs at 9755.9. This move could also potentially break out of the ascending channel. 

On the flip side, failure of the Nasdaq 100 to hold above 9452.0 could open the door for a further reversal towards 9264.4. The full move could potentially find its way to the lower border of the ascending channel. However, any price moves to the downside that target the lower border of the channel must also overcome the 9167.4 and 9092.3 price levels. Only a breakdown of the channel will bring 8945.7 and 8691.0 into focus, with further support targets located at 8442.5 and 8160.2.

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